Seller Needs to find somewhere to move

With the current nationwide house crisis, the most common objection you will face is a seller willing to sell but needing to find their next place of residence first.

Process

1. Do a realistic assessment of the seller and determine if they are actually going to be able to find somewhere to move that meets their requirements
   1. Many sellers will have little money and mediocre credit that makes it difficult for them to buy or rent a similar property than they are moving out of
   2. Many homeowners will have resistance to moving “backwards” into a rental after having owned a home.
2. If the sellers chances of finding a rental or new purchase are low, its important to educate them early on their limited options and discuss alternatives such as moving in with family or into a senior home if they are elderly.
3. When moving forward with the transaction there are 2 primary options:
   1. You have an extended closing so they have time to find somewhere to go
   2. You close and do a hold back of proceeds while they remain in the property.
4. If doing an extended closing:
   1. It is important that you are ACTIVELY assisting them in finding the next location. Very quickly they will stop searching and let the contract lapse/decide to not move forward as soon as they realize how difficult it really is to find their next spot.
   2. Try to make the trigger for moving forward to be when they identify or go under contract on a new home, NOT when they close.
   3. If possible, have them sign a first right of refusal or have them agree to allow you to cloud title so they cant be enticed by another investor who might come along in this extended closing window.
5. If doing a hold back where they remain occupying the property:
   1. Hold back a significant amount. 50% or $20k+ which ever is more. If they are getting less proceeds than that then hold back as much as you possibly can.
   2. Put them on lease at closing. They will resist this, but let them know it is the official process just to protect yourself in case they decide to squat in the property. If you make this conversation comical they will understand your concern.
      1. If you dont put them on lease and things do get weird youll have no recourse to get them out of the property.
   3. When they move out before releasing the funds ensure they paid their utilities, havent damaged the property, and have cleaned the property out to whatever level you made youre agreement.
      1. Outline all of this in your PSA regarding the lease back agreement.
   4. Give them a short time to stay for free, but convert to a paid lease in no longer than 30 days. Instead of having them pay on the lease, instead write that itll be deducted from the proceeds being held in escrow at a rate that is premium to market rent.
   5. Once the lease back starts, check in regularly and actively work to help them find their next location. If they are comfortable and can skate by affording the payment toy ou, theyll likely drag things out as long as they can.
   6. Once the seller is out and all parts of the agreement are confirmed, don’t delay to get them their funds being witheld in escrow.